Business leader issues alert on potential national employee exhaustion within automotive sector
European Car Industry Braces for Radical Change as EU Plans Internal Combustion Engine Ban by 2035
In a significant move, the European Union has proposed a ban on new internal combustion engines (ICEs) on European roads from 2035. However, this decision has sparked concerns from the car industry, with a leading CEO expressing deep-seated fears about the consequences of such a change.
The CEO of a prominent German automotive component manufacturer, Mahle, has expressed reservations about the EU's ambitious plan. The company specializes in the development and production of crucial components for ICEs, such as pistons and piston rings. Despite efforts to innovate for electric motors, doubts persist.
Europe, according to the CEO, requires technological openness to foster not only e-mobility but also alternative fuels like e-fuels alongside them. A ban on ICEs could lead to a devastating loss of expertise and jobs, causing them to migrate to countries like China, America, and India where ICEs are not subject to a ban. As a result, the European automotive industry could face severe damage within 12 to 24 months, potentially leading to its extinction.
The EU's plans call for only electric cars to be sold in Europe from 2035. An exception for ICEs running on CO2-neutral fuel, called e-fuels, is still under discussion. While many European car manufacturers have previously supported these plans, the industry is increasingly voicing criticism against the EU.
The rapid shift to electric vehicles requires substantial investments in charging infrastructure, battery technology, and supply chain adjustments. The transition could strain resources and lead to supply chain disruptions. Moreover, the high cost of electric vehicles and the potential limitation of consumer choice are concerns often raised against such a ban.
While the exact concerns of the Mahle CEO have not been extensively detailed, it is clear that the industry is bracing for a substantial change. A gradual transition, allowing for a balanced approach between ICEs and EVs, may be needed to ensure the industry can adapt without jeopardizing existing business models.
The Euro-centric car industry grapples with the prospect of losing its technological expertise and workforce, as the shift towards electric vehicles might compel skilled professionals to migrate to nations where ICEs are not banned. Concurrently, the European automotive sector faces potential threats of severe damage within the next few years, if not addressed through a more gradual transition that balances the progress of ICEs and EVs.
